- SpeakEasy Cannabis Club (CSE:EASY) has signed a non-binding letter of intent (LOI) with Christina Lake Cannabis (CLC)
- CLC will contract SpeakEasy to process and sell the cannabis biomass and flower that comes from CLC’s production facility
- The two companies will also work jointly to develop and produce white label products made from CLC’s input material
- SpeakEasy Cannabis Club (EASY) is down 1.25 per cent, and is currently trading for C$0.40 per share
SpeakEasy Cannabis Club (CSE:EASY) has signed a non-binding letter of intent regarding a joint venture with Christina Lake Cannabis (CLC).
As part of the agreement, CLC will contract SpeakEasy to process and sell the cannabis biomass and flower which CLC produces in its facility. SpeakEasy intends to provide all of those services, upon receiving the appropriate licences.
SpeakEasy will use its own facility to conduct the contract processing for CLC, creating an additional stream of revenue for the company. The additional material is likely to assist the company with keeping up in domestic and international markets.
In addition, the two companies will also work jointly to develop and produce white label, value-added products. The products will be made using Christina Lake Cannabis’s input material.
SpeakEasy and CLC share a great deal in common, including similar climate regions, genetics and growing techniques. This will allow for easier cooperation between the two companies, as well as the sharing of supplies, equipment and technology.
The companies’ farms also both have growers with extensive experience. As such, both parties expect that the finished products will be compatible, and will market well together.
SpeakEasy’s founder and CEO, Marc Geen, said that he was thrilled to be working with the team from Christina Lake Cannabis.
“We’ve known each other for years, and I couldn’t be happier to have our two families cooperating together,” he said.
Since SpeakEasy produces its cannabis flower outdoors, its costs are comparatively lower than the industry average. As such, the company expects that the joint venture will have a strong effect on the market.
Furthermore, having more competitively-priced material may allow SpeakEasy to enter more supply agreements in Canadian provinces.
SpeakEasy Cannabis Club (EASY) is down 1.25 per cent, and trading for $0.40 per share, as of 12:18pm EST.
